United States
                       Securities and Exchange Commission
                             Washington, D. C. 20549


                                   FORM 10-QSB

                                   (Mark One)


[X] Quarterly  Report Under Section 13 or 15(d ) of the Securities  Exchange Act
    of 1934 For the Period Ended December 31, 1997 or

[ ] Transition Report Under Section 13 or 15(d ) of the Securities  Exchange Act
of 1934 For the Transition Period Ended From       to
                               ------------------

Commission file number        0-25332

                           GOLF TRAINING SYSTEMS, INC.
             (Exact name of registrant as specified in its charter)

        Delaware                                                  58-1963120
(State or other jurisdiction of                               (I.R.S. Employer
incorporation or organization)                               Identification No.)

       3400 Corporate Way, Suite G
         Duluth, Georgia                                             30136
  (Address of principal executive offices)                         (Zip Code)

                                 (770) 623-6400
              (Registrant's telephone number, including area code)

                                 Not applicable
   (Former name, address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding 12 months (or for such shorter  periods that the  registrant  was
required  to file  such  reports),  and  (2) has  been  subject  to such  filing
requirements for the past 90 days. Yes X No

                Applicable Only to Issuers Involved in Bankruptcy
                   Proceedings During the Preceding Five Years

Indicate  by check mark  whether  the  registrant  has filed all  documents  and
reports  required  to be filed by  Sections  12, 13, or 15(d) of the  Securities
Exchange Act of 1934 subsequent to the  distribution of securities  under a plan
confirmed by the court. Yes     No

                      Applicable Only to Corporate Issuers

Indicate the number of shares  outstanding  of each of the  issuer's  classes of
common stock, as of the latest practical date:

Common Stock, $.01 Par Value - 3,933,104 shares as of January 31, 1998.


<PAGE>

                         PART I - FINANCIAL INFORMATION
Item 1.  Financial Statements

                           GOLF TRAINING SYSTEMS, INC.
                      Condensed Consolidated Balance Sheets
<TABLE>
<CAPTION>
                                                                        December 31,               June 30,
                                                                            1997                     1997
                                                                        ------------           -------------
                                                                         (Unaudited)                (Note)
                            ASSETS
<S>                                                                     <C>                    <C>
Current Assets:
   Cash and cash equivalents .......................................... $    236,140           $      74,047
   Receivables, net ...................................................      277,826                 247,289
   Inventories ........................................................      268,451                 329,141
   Prepayments and other ..............................................      236,154                  38,814
                                                                        ------------           -------------

   Total Current Assets ...............................................    1,018,571                 689,291

Equipment and Improvements, net .......................................      132,717                 171,036

Other Assets:
   Patents, trademarks and license agreements, net ....................       90,924                 114,488
   Goodwill, net ......................................................    1,308,311               1,405,224
   Net assets of discontinued operations ..............................    1,279,396               1,329,940
   Other ..............................................................        5,650                   6,523
                                                                        ------------           -------------

                                                                        $  3,835,569           $   3,716,502
                                                                        ============           =============

             LIABILITIES AND STOCKHOLDER'S EQUITY

Current Liabilities:
   Accounts payable ................................................... $    150,435           $     126,535
   Notes payable ......................................................      800,000                      --
   Accrued expenses ...................................................      318,747                 184,188
                                                                        ------------           -------------

   Total Current Liabilities ..........................................    1,269,182                 310,723

Stockholders' Equity:
   Preferred stock, $.01 par value;
     3,000,000 shares authorized:
       Series A, 600 shares authorized,
       106 shares issued ..............................................    1,060,000               1,605,000
       Series B, 50 shares authorized,
       8 shares issued ................................................      200,000                      --
   Common stock, $.01 par value; 10,000,000
     shares authorized; 3,913,582 shares issued .......................       39,136                  36,893
   Additional paid-in capital .........................................   11,828,693              11,138,464
   Accumulated deficit ................................................  (10,561,442)             (9,374,578)
                                                                        -------------          -------------
   Total Stockholders' Equity .........................................    2,566,387               3,405,779
                                                                        ------------           -------------

                                                                        $  3,835,569           $   3,716,502
                                                                        ============           =============
</TABLE>
Note:  The  balance  sheet at June 30,  1997 has been  derived  from the audited
financial  statements at that date but does not include all the  information and
footnotes  required by generally  accepted  accounting  principles  for complete
financial statements.

The  accompanying  notes  are an  integral  part of the  condensed  consolidated
financial statements.
<PAGE>


                           GOLF TRAINING SYSTEMS, INC.
                 Condensed Consolidated Statements of Operations
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                     Three Months Ended               Six Months Ended
                                                        December 31,                     December 31,
                                                 --------------------------      ---------------------------
                                                     1997           1996             1997            1996
                                                 -----------    -----------      ------------    -----------
                                                                   (Note)                           (Note)
<S>                                              <C>            <C>              <C>             <C>
Net sales ...................................... $   571,096    $   771,253      $  1,007,048    $ 1,057,443
Cost of sales ..................................     365,196        478,574           685,141        700,838
                                                 -----------    -----------      ------------    -----------

Gross margin ...................................     205,900        292,679           321,907        356,605

Operating expenses:
   Selling and marketing .......................     287,327        343,685           596,542        662,991
   General and administrative ..................     382,766        367,123           695,742        677,860
   Research and development ....................       6,746            277             9,585          1,194
                                                 -----------    -----------      ------------    -----------

                                                     676,839        711,085         1,301,869      1,342,045
                                                 -----------    -----------      ------------    -----------

   Operating loss ..............................    (470,939)      (418,406)         (979,962)      (985,440)

Other income (expense) .........................       9,978         13,930            14,435         50,676
                                                 -----------    -----------      ------------    -----------

   Loss from continuing operations .............    (460,961)      (404,476)         (965,527)      (934,764)

Loss from discontinued operations ..............    (150,700)      (120,787)         (221,337)      (374,265)
                                                 ------------   ------------     -------------   ------------

Net loss ....................................... $  (611,661)  $   (525,263)     $ (1,186,864)  $ (1,309,029)
                                                 ============  =============     =============  =============

Basic net loss per share:
   Continuing operations .......................      $ (.12)        $ (.13)            $(.26)        $ (.29)
   Discontinued operations .....................        (.04)          (.04)             (.05)           (12)
                                                      -------        -------           -------        -------
                                                     $  (.16)        $ (.17)           $ (.31)         $(.41)
                                                     ========        =======           =======        =======

Weighted average common shares .................    3,866,475      3,073,484         3,783,693      3,176,509
                                                    =========      =========         =========      =========
</TABLE>
Note:  The  statements of  operations  for the three and six month periods ended
December 31, 1996 have been restated from previously reported amounts to reflect
the discontinued operations. See Note 2 to the Consolidated Financial Statements
in the Company's 1997 Annual Report on Form 10-KSB.

The  accompanying  notes  are an  integral  part of the  condensed  consolidated
financial statements.

<PAGE>


                           GOLF TRAINING SYSTEMS, INC.
                 Condensed Consolidated Statements of Cash Flows
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                            Six Months Ended December 31,
                                                                       -------------------------------------
                                                                            1997                    1996
                                                                       -------------           -------------
<S>                                                                    <C>                     <C>
Cash flows used in operating activities .............................. $    (771,627)          $  (1,281,268)

Cash flows used in investing activities ..............................        (7,877)               (323,053)

Cash flows from financing activities .................................       941,597                      --
                                                                       -------------           -------------

   Net increase (decrease) in cash and cash equivalents ..............       162,093              (1,604,321)

Cash and cash equivalents at beginning of period .....................        74,047               2,009,820
                                                                       -------------           -------------

Cash and cash equivalents at end of period ........................... $     236,140           $     405,499
                                                                       =============           =============
</TABLE>
The  accompanying  notes  are an  integral  part of the  condensed  consolidated
financial statements.

<PAGE>



                           GOLF TRAINING SYSTEMS, INC.
              Notes to Condensed Consolidated Financial Statements
                                December 31, 1997
                                   (Unaudited)

1.  Basis  of  Presentation  The  accompanying   unaudited  condensed  financial
statements  of Golf Training  Systems,  Inc. (the Company) have been prepared in
accordance with generally accepted  accounting  principles for interim financial
information  and  with the  instructions  to Form  10-QSB  and  Regulation  S-B.
Accordingly,  they do not include all the information and footnotes  required by
generally accepted accounting principles for complete financial  statements.  In
the opinion of  management,  all  adjustments  (consisting  of normal  recurring
items)  considered  necessary  for  a  fair  presentation  have  been  included.
Operating  results for the three and six month periods  ended  December 31, 1997
are not necessarily  indicative of the results that may be expected for the year
ended June 30, 1998.  For further  information,  refer to the audited  financial
statements and notes thereto  included in the Company's Form 10-KSB for the year
ended June 30, 1997.

2. Loss per Share The Company  adopted the  provisions  of Financial  Accounting
Standards  Board Statement No. 128 "Earnings per Share"  effective  December 31,
1997.  Comparable  periods in the previous year have been restated to conform to
the  provisions of this  Statement.  No diluted loss per share amounts have been
presented due to the anti-dilutive nature of all other potential common shares.

3. Inventories The components of inventory consist of the following: <TABLE>
<CAPTION>

                                                      December 31,          June 30,
                                                          1997                1997
                                                    ---------------     ---------------

<S>                                                 <C>                 <C>
                  Raw materials                     $       109,616     $       133,592
                  Finished goods                            158,835             195,549
                                                    ---------------     ---------------

                                                    $       268,451     $       329,141
                                                    ===============     ===============
</TABLE>
4.  Notes  Payable  Included  in notes  payable is a  $750,000  advance  under a
$1,000,000  credit  facility with a  stockholder  which matures with all accrued
interest on June 30, 1998. The advance  accrues  interest at 10% per year and is
collateralized  by all assets of the  Company.  The  Company  also issued to the
lender a warrant to  purchase up to  1,000,000  shares of the  Company's  common
stock  for $.25 per share  exercisable  through  June 30,  1998.  The  remaining
balance of notes payable ($50,000) is a short term note repaid in January 1998.



<PAGE>


Item 2.  Management's Discussion and Analysis of Financial Condition and Results
         of Operations

Results of Operations

Net sales (gross sales less returns and  allowances)  for the three month period
ended December 31, 1997 (1998  quarter)  decreased to $571,096 from $771,253 for
the three month period ended December 31, 1996 (1997 quarter), and to $1,007,048
for the six month  period  ended  December  31,  1997  (1998  year to date) from
$1,057,443 for the six month period ended December 31, 1996 (1997 year to date),
or decreases of approximately 26% and 4.8%, respectively. Gross margins remained
relatively unchanged between the periods.

The decrease in sales in the 1998 quarter resulted from the Company's diminished
working capital position which required close management of available cash, thus
forcing a reduction in  purchasing of higher margin goods during the quarter and
year to date. The Company closed a line of credit facility with a stockholder on
December 31, 1997 which increased the Company's  working capital and facilitated
renewed  purchasing of goods.  The Company  continues to focus its resources and
efforts on its higher  margin  products  while  reducing its  investment  in low
margin products and services.

Selling and marketing expenses and general and administrative expenses decreased
slightly  (6%) to  $670,093  for the 1998  quarter  from  $710,808  for the 1997
quarter and to $1,292,284 for 1998 year to date from $1,340,851 for 1997 year to
date  reflecting the effort of the Company to manage its overhead  expense level
to achieve more efficiency and profitability.

At June 30, 1997,  management  determined that its Sports Training Systems (STS)
operations should be classified as a discontinued operation.  (See Note 2 to the
consolidated  financial  statements  included in the Company's  annual report on
Form 10-KSB at June 30, 1997). Management's decision to cease operations was the
result of an alleged  breach of  contract by  Biosports,  LLC,  the  licenser of
certain  motion capture  technology  that STS intended to develop and market for
golf and other applications.  The loss from discontinued operations continues to
impact  the  profitability  of  the  Company,   however,  the  losses  from  the
discontinued  operations  for  1998  year to date  decreased  to  $221,337  from
$374,265  for  1997  year to date as the  Company  continued  to shut  down  the
operations.  Expenses for 1998 year to date relate  primarily to amortization of
certain assets and legal costs.

The Company's net loss of $611,661  ($.16 per share) for the 1998 quarter was up
slightly  from a net loss of  $525,263  ($.17 per share)  for the 1997  quarter,
however,  profitability for 1998 year to date was somewhat improved with a lower
loss of  $1,186,864  ($.31 per share) as compared to 1997 year to date losses of
$1,309,029 ($.41 per share).




<PAGE>


Liquidity and Sources of Capital

At December 31,  1997,  the Company had  negative  working  capital of $250,611,
including  $236,140 of cash and cash  equivalents.  Included in notes payable in
current  liabilities  is a $750,000  short term note under a  $1,000,000  credit
facility with a stockholder of the Company. Under the terms of the agreement and
upon the approval of the stockholders to increase the authorized common stock at
a special  meeting of  stockholders  to be held early in 1998, at the request of
the Company, the lender will advance the additional $250,000. The lender is also
required,  after the  approval  above,  to exchange  the  outstanding  principal
balance  under the  facility  for 50,000  shares of new Series C, par value $10,
convertible  preferred stock, a five year senior secured note in an amount equal
to the then outstanding  principal balance less $500,000 and a five year warrant
to purchase four million shares of common stock at an exercise price of $.25 per
share.  After June 30, 1999,  the senior  secured note may be exchanged  for new
Series D convertible preferred stock.

The Company had an  improvement  in its negative  cash flows from  operations of
$771,627  for 1998 year to date from  negative  cash  flows from  operations  of
$1,281,268  for 1997 year to date.  The reduction in the negative cash flow from
operations reflects continued  increased gross margins and reduced expenses.  On
February  12,  1998,  the  Company  received  $418,557  from  BioSports,  LLC in
satisfaction  of the  award  from an  arbitration  proceeding  in  favor  of its
majority owned subsidiary,  Sports Training Systems,  LLC. However,  the Company
has also accumulated a significant deficit during the period of fully developing
its product  lines and may require  additional  financing to achieve  profitable
operations. These conditions raise substantial doubt about the Company's ability
to continue as a going  concern.  If the  stockholders  approve the  increase in
authorized  common  stock,  the Company will have  available to it an additional
$250,000 of debt  financing and the  possibility  of an  additional  $250,000 of
liquidity through the exercise of the lender's warrant.


<PAGE>


                           PART II - OTHER INFORMATION



Item 1.   Legal Proceedings.

On November 12, 1997, the Company obtained a favorable ruling in its arbitration
proceedings with Biosports,  LLC. Under the terms of the award,  BioSports is to
pay $411,000 in damages to Sports Training Systems,  LLC (STS), a majority owned
subsidiary  of the  Company.  On February  12,  1998,  STS received a payment of
$418,557  which   satisfied  the  award,   including   post-judgment   interest.
Additionally,  there has been no change in the litigation discussed in Note 2 to
the  Consolidated  financial  statements in the Company's  Annual Report on Form
10-KSB for the year ended June 30, 1997.

Item 2.   Changes in Securities.

          (a)     Not applicable.

          (b)     Not applicable.

Item 3.   Defaults Upon Senior Securities.

          (a)     Not applicable.

          (b)     Not applicable.

Item 4.   Submission of Matters to a Vote of Security Holders.

          Not applicable.

Item 5.   Other Information.

          Not applicable.

Item 6.   Other Information.

          (a)     Exhibits.

                   10.      Material Contracts
                            Loan Agreement dated December 31, 1997 with John H.
                            Laeri, Jr.

          (b)     Reports on Forms 8-K

                  The Company filed an 8-K on January 9, 1998 regarding entering
                  into a Short term $1,000,000 secured credit facility.


<PAGE>


                                   SIGNATURES


Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.

                                                     GOLF TRAINING SYSTEMS, INC.
                                                             (Registrant)



Date          February 16, 1998                          /s/ Daniel A. Gordon
    ----------------------------------------      ------------------------------
                                                           Daniel A. Gordon
                                                      Chief Executive Officer